|Bid||95.82 x 800|
|Ask||0.00 x 2200|
|Day's Range||94.68 - 95.95|
|52 Week Range||66.53 - 96.87|
|Beta (3Y Monthly)||0.83|
|PE Ratio (TTM)||35.77|
|Earnings Date||Dec 19, 2019|
|Forward Dividend & Yield||0.98 (1.05%)|
|1y Target Est||102.97|
(Bloomberg) -- Peloton Interactive Inc. has been pilloried online and punished on the stock market following the release of a holiday ad for its stationary exercise bike that was deemed culturally insensitive. But the backlash could be a good thing for the company in the long run.The commercial, which features a woman documenting a year in her life with the Peloton bike her male partner gave her, struck some viewers as out of touch -- suggesting the already thin “Grace from Boston” was undergoing a strenuous workout in order to lose weight for the guy. The video, released about a month ago, went viral on social media, eliciting a scathing parody by comedian Eva Victor and prompting Peloton to close comments on the official YouTube video.As the internet buzz seemed to hit a peak earlier this week, Peloton’s stock fell 9%. But some experts say the increased attention could end up boosting sales.“They might benefit more because people are looking it up and learning more about it,” Laura Ries, president of advertising consultancy firm Ries & Ries, said. It’s still a short-term bump for a company that has historically been largely successful with marketing, with a total member base of 1.6 million people including more than 560,000 who have one of the proprietary bikes or treadmills plus a fitness subscription, according to Peloton’s most recent quarterly report. The official Peloton ad on the company’s YouTube channel has been seen by more than 3.6 million people.The controversy comes at a crucial time for the New York-based company, which is new to market scrutiny after listing shares in September, as it seeks to capitalize on the all-important holiday sales season and expand in new markets like the U.K. and Germany. The shares had gained 27% since its initial public offering before the wave of internet commentary dragged it down on Tuesday. The shares closed 5% lower on Thursday.The company is also facing increased competition in the booming at-home fitness market, especially among workout apps. Nike Inc., Aaptiv Inc. and apps like Kayla Itsines’s Sweat with Kayla have all gained followings for exercise programs available on a user’s phone.Peloton has been punished by Wall Street for its focus on growth over profitability. The company sells a stationary bike starting at about $2,000 and a treadmill that costs about $4,000, in addition to a basic “connected fitness” subscription plan at $39 a month for those pieces of hardware, and the separate digital apps that don’t require equipment. Its loss narrowed in the three months ended Sept. 30 to $49.8 million.The stock surged almost 10% last Friday after the company was reportedly seeing strong demand on Black Friday. And earlier this month, Peloton lowered the price of its digital subscription app to $12.49 a month from $19.99 in conjunction with the launch of new apps for Amazon’s Fire TV and the Apple Watch, a move that could entice new users. JMP Securities analysts raised their price target on the stock to $38 after the subscription reduction, saying it “broadens Peloton’s reach, improves conversion, and reduces purchase friction.” Ronald Josey, a JMP analyst, said there are “a lot of good things going on” at the company and that people will continue to buy the bike and other products despite the controversy.According to the most recent earnings report, Peloton expects its user base to grow to 680,000 or more by the end of its second quarter thanks to holiday sales and New Year’s resolutions.Scott Galloway, a professor of marketing a the NYU Stern School of Business, said the commercial itself is tone deaf and borderline offensive. But “in this attention-driven economy, anything that gets attention is arguably a positive,” he said in an interview. “It’s bringing Peloton into the social discourse on very regular basis, which is what ads are supposed to do.” If Peloton had to do it again, Galloway said, “I’d argue they probably would.”To contact the reporter on this story: Julie Verhage in New York at email@example.comTo contact the editors responsible for this story: Mark Milian at firstname.lastname@example.org, Molly Schuetz, Anne VanderMeyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The Dow Jones traded slightly higher, defying the Trump impeachment news. Nike and Apple led the Dow Jones after big analyst upgrades.
Nike stock stepped into a buy zone after a Goldman Sachs analyst upgraded the Dow Jones athletic apparel giant, expecting a "sharp acceleration" of growth ahead.
The Dow Jones edged higher in afternoon trading Thursday, but Nike and Apple outperformed, helped by positive analyst chatter.
U.S. stocks dipped on Thursday as declines in defensive sectors such as consumer staples overshadowed gains in technology stocks, while a lack of new developments in trade talks between Washington and Beijing kept investors on the sidelines. Wall Street's main indexes opened higher, extending gains from the previous session, but quickly lost steam in the first hour of trading. "There is no new news on the trade war and it's mostly that," said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.
Key market indexes reversed from early gains Thursday, as the Dow Jones industrials gave up a near 100-point gain despite advances from Nike and Apple.
CEO turnover is up recently. Is it a trend, and if so, what could it mean for investors? Could it signal the end of the bull market?
Wall Street's main indexes dropped on Thursday, as investors stayed away from making riskier bets owing to a lack of new developments in U.S.-China trade talks. The three main stock indexes opened higher, extending gains from the previous session, but lost steam in the first hour of trading. "There is no new news on the trade war and it's mostly that," said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.
The major stock indexes reversed early gains Thursday, despite continued trade optimism. Nike stock scored a breakout after an upgrade.
Goldman Sachs analyst Alexandra Walvis upgraded Nike stock to Buy from Neutral and added the stock to the firm’s conviction list. With the upgrade, Walvis becomes the 25th analyst with a Buy rating or equivalent, against eight Neutrals and two Sells.
Tilly's and Five Below rallied, while Nike led the Dow Jones today as the stock market looked to add a second day to its rebound.
U.S. stocks opened higher Thursday after reports that trade talks with China were still on track and following positive data on the labor market. The Dow Jones Industrial Average rose 55 points, 0.2%, to open near 27,704. The S&P 500 rose nearly 3 points, 0.1%, opening near 3,115. The Nasdaq opened near 8,579, up 12 points or 0.1%. Shares of Nike jumped pre-market after an upgrade from analysts at Goldman Sachs.
U.S. stocks looked set to open higher on Thursday on brighter hopes of a preliminary trade deal between the United States and China. Headlines around trade suggested the world's two largest economies were closer to agreeing how many tariffs would be rolled back in a "phase one" trade deal, while President Donald Trump said talks with China were going "very well". Wall Street's main indexes snapped a three-day losing streak in the previous session on growing expectations of a trade deal, putting the benchmark S&P 500 index just 1% away from an all-time high hit last week.
Stocks are mostly flat on Thursday -- but not the athletic-apparel major Nike , which is up 1.7% on the day. Giving the company a boost is a call from Goldman Sachs analysts, who upgraded the stock to buy.
Nike Inc. shares rose 2.3% in premarket trade Thursday, after Goldman Sachs upgraded the stock to buy from neutral and added it to its Conviction List. "We believe Nike is a unique asset, where a strong brand combined with a disruptive and innovative strategy are positioning the business for multi year growth, expansion in margins, and higher returns on invested capital," analysts led by Alexandra Walvis wrote in a note to clients. A bottom up analysis of the company suggests China is a key growth driver for the sporting goods company and Goldman is expecting that Nike can grow revenue in China at a high teens pace. Direct-to-consumer is the biggest driver, reaching 50% of the region's revenue by 2023, according to Goldman estimates. The company can also expect support from growing purchasing power among younger consumers where the brand is clearly resonating. "Evidence of building pricing power, signs of operating leverage, accelerating shift to differentiated retail, sharply scaling app ecosystem, and a constructive global athletic growth backdrop," are the key motivations for the upgrade, said the note. Nike shares have gained 26% in 2019, while the Dow Jones Industrial Average , which counts Nike as a member, has gained 18.5% and the S&P 500 has gained 24%.
The stock of the athletic shoe and sneaker maker is up on the heels of a Goldman Sachs upgrade to 'Buy' and placement on their so-called Conviction List. In this daily bar chart of NKE, below, we can see that prices have gapped higher this morning and are challenging the October zenith. The daily On-Balance-Volume (OBV) has been flat/neutral the past month but shows a rising pattern the past year to confirm the uptrend in price and tell us that buyers of NKE have been more aggressive.
Two big-time firms on Wall Street, Goldman Sachs and Morgan Stanley, are bringing the cheer to Nike bulls this holiday season. As we slide into the back half of the first week of December, Goldman upgraded shares of Nike to 'Conviction Buy' Thursday morning with a $112 price target. Morgan Stanley's optimism exceeds Goldman's. Add another $6 to that price target as the analyst views Nike's accelerated move to DTC (direct-to-consumer) sales gaining momentum.
The stock is higher Thursday as Goldman Sachs analysts say the athletic-apparel and -equipment icon is poised to take market share in a still-growing China market.
Nike has had a pretty good run this year, and Goldman Sachs thinks it has a lot more room to grow. The stock got upgraded to 'buy' - and was added to the firm's conviction list. Alexandra Walvis called Nike a unique asset, thanks to it being a strong brand with a disruptive and innovative strategy. Walvis sees more room for Nike to grow its online presence, especially in China.